Tag Archives: PAYGO

Waiting Until January 3 to Sign Tax Reform Would Not Have Delayed a PAYGO Sequestration

by Sam Wice — Saturday, Dec. 23, 2017

In an earlier post, I suggested that Republicans should wait until January 2018 to pass tax reform so that they can delay a Pay-As-You-Go (PAYGO) sequestration.  President Trump appears to have taken this idea to heart and decided that if Congress did not waive the PAYGO sequestration, he would wait until January 3, 2018 to […]

Congress Just Allowed President Trump to Estimate the Official Costs of Tax Reform

by Sam Wice — Tuesday, Dec. 19, 2017

Republicans plan to pass a deficit increasing tax-reform proposal, but the Pay-As-You-Go Act (PAYGO) requires that legislation cannot increase the deficit within a five-year or ten-year window.  If legislation would increase the deficit in either window, an offsetting, automatic sequestration would kick in.  Although the non-partisan Congressional Budget Office (CBO) and Joint Committee on Taxation (JCT) […]

The Gimmick Republicans Could Use to Avoid a PAYGO Sequestration

by Sam Wice — Monday, Dec. 11, 2017

Republicans plan to pass a deficit increasing tax-reform proposal, but the Pay-As-You-Go Act (PAYGO) would require a sequestration, an automatic reduction in spending, if tax reform increased the deficit.  Republicans could avoid a sequestration by convincing Senate Democrats to support legislation lifting the sequestration.  Democrats, however, might not be willing to compromise on an issue […]

Why the End of This Year Is the Worst Possible Time to Pass Tax Reform

by Sam Wice — Friday, Dec. 1, 2017

Republicans hope to pass tax reform before Christmas so that they can go back to their constituents over the Winter Holidays and talk about their accomplishments.  However, because of the Pay-As-You-Go Act (PAYGO), passing tax reform at the end of the year would be the worst possible time to pass tax reform as it would […]